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> Despite previously claiming that Tether was backed 100% by cash, the company’s breakdown of reserves at the time showed that less than 3% of Tether reserves w
by selfportrait 5y ago
> Despite previously claiming that Tether was backed 100% by cash, the company’s breakdown of reserves at the time showed that less than 3% of Tether reserves were actually held in cash.
If this does not eventually implode cryptocurrency valuations, I don't know what will.
- naniwaduni 5y agoWhat's scarier, the idea that after all these years the markets haven't priced this into cryptocurrency valuations ... or that cryptocurrency valuations might already have priced this in?
- qgin 5y agoIt’s hard for me to imagine how it isn’t the first one. Nothing is really priced in the Bitcoin’s valuation except risk on / risk off. It’s a pure play on appetite for risk assets and that’s about it. People say it’s an inflation hedge but it drops on big inflation prints. It has super tight correlation with hyper growth tech stocks. It makes big moves sometimes when Elon tweets, but otherwise it’s mostly just following appetite for risk.
- aaaaaaaaata 5y ago> Nothing is really priced in the Bitcoin’s valuation If you are not buying or selling Bitcoin, or talking to people who are, at best! this is conjecture.
- aaaaaaaaata 5y agoIf it was going to (many expected it would), it would come at the hands of regulators. They're not interested, and possibly even complicit, if you look at who began/still operates the thing. Also, the stats show that the market has seemingly begun its slow shift away from Tether to less openly gross stablecoins. If we can get exchanges to stop giving it away like the Monopoly money that it is, that'll be the final nail.